DB:EP6

Stock Analysis Report

El Pollo Loco Holdings

Executive Summary

El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has El Pollo Loco Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EP6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.9%

EP6

-4.8%

DE Hospitality

-0.9%

DE Market


1 Year Return

4.8%

EP6

3.3%

DE Hospitality

12.8%

DE Market

Return vs Industry: EP6 exceeded the German Hospitality industry which returned 3.3% over the past year.

Return vs Market: EP6 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

EP6IndustryMarket
7 Day6.9%-4.8%-0.9%
30 Day6.9%1.4%0.6%
90 Day3.7%-14.7%2.9%
1 Year4.8%4.8%7.8%3.3%16.3%12.8%
3 Year18.7%18.7%-9.6%-22.0%15.8%5.7%
5 Year-36.8%-36.8%-12.3%-30.9%19.7%3.3%

Price Volatility Vs. Market

How volatile is El Pollo Loco Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is El Pollo Loco Holdings undervalued compared to its fair value and its price relative to the market?

2.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EP6 (€14) is trading above our estimate of fair value (€0.35)

Significantly Below Fair Value: EP6 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EP6 is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: EP6 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EP6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EP6 is good value based on its PB Ratio (2.2x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

How is El Pollo Loco Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

47.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EP6 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: EP6 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EP6's is expected to become profitable in the next 3 years.

Revenue vs Market: EP6's revenue (2.5% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: EP6's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EP6's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has El Pollo Loco Holdings performed over the past 5 years?

-48.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EP6 is currently unprofitable.

Growing Profit Margin: EP6 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EP6 is unprofitable, and losses have increased over the past 5 years at a rate of -48.6% per year.

Accelerating Growth: Unable to compare EP6's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EP6 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-36.8%).


Return on Equity

High ROE: EP6 has a negative Return on Equity (-0.84%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is El Pollo Loco Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EP6's short term assets ($27.1M) do not cover its short term liabilities ($80.4M).

Long Term Liabilities: EP6's short term assets ($27.1M) do not cover its long term liabilities ($315.1M).


Debt to Equity History and Analysis

Debt Level: EP6's debt to equity ratio (42.1%) is considered high.

Reducing Debt: EP6's debt to equity ratio has reduced from 93.9% to 42.1% over the past 5 years.


Balance Sheet

Inventory Level: EP6 has a high level of physical assets or inventory.

Debt Coverage by Assets: EP6's debt is not covered by short term assets (assets are 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EP6 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: EP6 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is El Pollo Loco Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage5.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate EP6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EP6's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EP6's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EP6's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EP6's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Bernard Acoca (50yo)

1.9yrs

Tenure

US$2,952,815

Compensation

Mr. Bernard Acoca has been President, Chief Executive Officer and Director of El Pollo Loco Holdings, Inc. since March 12, 2018. Mr. Acoca serves as President and Chief Executive Officer of El Pollo Loco,  ...


CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD2.95M) is above average for companies of similar size in the German market ($USD802.74K).

Compensation vs Earnings: Insufficient data to compare Bernard's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Bernard Acoca
President1.9yrsUS$2.95m0.24% $1.1m
Laurance Roberts
CFO & Treasurer6.6yrsUS$992.42k0.17% $829.3k
Miguel Lozano
Chief Operating Officer0.8yrsno data0.062% $297.2k
Douglas Soller
Vice President of Accounting & Finance0yrsno datano data
Jason Weintraub
Chief Legal Officer0.5yrsno datano data
Hector Munoz
Chief Marketing Officer1.2yrsno data0.095% $452.4k
Jennifer Jaffe
Chief People Officer & Senior VP1.5yrsno datano data
Edith Austin
Corporate Secretary0yrsno datano data

1.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: EP6's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bernard Acoca
President1.9yrsUS$2.95m0.24% $1.1m
John Roth
Independent Director13.1yrsUS$121.25k0.038% $178.7k
Dean Kehler
Director14.3yrsUS$120.00k0.030% $143.4k
William Floyd
Independent Director3.8yrsUS$175.00k0.052% $245.5k
Mark Buller
Independent Director4.7yrsUS$136.25k0.059% $278.7k
Michael Maselli
Chairman9.1yrsUS$120.00k0.030% $143.4k
Samuel Borgese
Independent Director9.1yrsUS$130.00k0.068% $324.1k
Douglas Babb
Independent Director2.1yrsUS$161.25k0.030% $143.4k
Carol Lynton
Independent Director3.8yrsUS$165.00k0.052% $245.5k

4.7yrs

Average Tenure

60yo

Average Age

Experienced Board: EP6's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

El Pollo Loco Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: El Pollo Loco Holdings, Inc.
  • Ticker: EP6
  • Exchange: DB
  • Founded: 1980
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$516.615m
  • Listing Market Cap: US$475.596m
  • Shares outstanding: 34.88m
  • Website: https://www.elpolloloco.com

Number of Employees


Location

  • El Pollo Loco Holdings, Inc.
  • 3535 Harbor Boulevard
  • Suite 100
  • Costa Mesa
  • California
  • 92626
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOCONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2014
EP6DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014
EP6BRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 2014

Biography

El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name. The company offers citrus-marinated, flame-grilled chicken, and handcrafted entrée products, including specialty chicken burritos, chicken quesadillas, and chicken tortilla soup, as well as under 500 calorie entrees, and Pollo Bowl and Pollo salad products. As of May 2, 2019, it had approximately 480 company-owned and franchised restaurants in Arizona, California, Nevada, Texas, Utah, and Louisiana. The company was formerly known as Chicken Acquisition Corp. and changed its name to El Pollo Loco Holdings, Inc. in April 2014. El Pollo Loco Holdings, Inc. was founded in 1980 and is headquartered in Costa Mesa, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 22:49
End of Day Share Price2020/02/21 00:00
Earnings2019/09/25
Annual Earnings2018/12/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.